Pan African Resources PLC (AIM:PAF, OTCQX:PAFRY, JSE:PAN) reported record gold production of approximately 112,000 ounces for the second half of the 2025 financial year, a 32% increase compared to the first half.
Full year output is expected to reach around 197,000 ounces, up 6% on the previous year.
Group net debt is expected to be about $155 million by the end of June, representing a reduction of some 32% from the start of this year.
Supported by continuing strong gold pricing, Pan African expects to be fully ‘degeared’ during FY26.
At the same time, it is now to proceed with a $11 million (ZAR 200 million) share buyback.
“I believe the group has never been better positioned to take advantage of record gold prices, with record second half gold production being testament to that achievement,” chief executive Cobus Loots said in a statement.
“Increased cashflow generation and de-gearing is allowing our business to continue to invest and grow, whilst also increasing cash returns to shareholders.
“The share buy back programme approved by our board demonstrates our confidence in the group and its prospects.”
Operations
PAF told investors that surface operations at Elikhulu, MTR and BTRP mines performed consistently despite heavy rainfall earlier in the year.
At Tennant Mines in Australia, the gold processing plant was commissioned in May and is expected to reach steady-state production of 50,000 ounces per year in the first quarter of FY26.
It now pitches group production guidance for FY26 between 275,000 and 292,000 ounces, a 40% increase from the prior year.
The company noted that in the second half of the 2025 financial year, the miner’s all-in-sustaining-cost (AISC) is expected to come in at $1,525 to $1,550 per ounce.
Next year, it forecasts a lowered AISC range between $1,475 and $1,525.
“We look forward to reporting our final results for the year ended June 2025 on 10 September 2025, where additional details on progress with our growth projects and sustainability initiatives will be presented,” Loots added.